Profit maximization through Freight Transport Automation

Governments are eager to introduce high-capacity vehicles (HCV) in order to minimize traffic congestion and carbon footprints associated with freight transport. The problem is that drivers have a hard time locating a new backhaul and want to get paid as quickly as possible.

The demand for urban shipments has increased by 5% as a result of the rise in e-commerce. However, shopkeepers have complained that their items have not arrived on schedule due to a lack of truckers. And carriers say that they lose a lot of money because of the wasted mileage. Load trucks are on the move, but with empty or underutilized trailers that cost the carrier money.

In order to have a positive influence on the transportation and logistics business, this article discusses how freight automation may maximize load reservations.

THE LOGISTICS AND TRANSPORTATION SERVICE CHALLENGE

Traditionally, shipping means contacting third-party brokers and carefully verifying the shipper. Despite their critical role in the supply chain, transportation services lag behind in terms of operational efficiency. The following are some critical difficulties confronting the logistics business today!

DEADHEAD MILES

The trucks that are driving without a load add to the number of dead miles on the road. Whenever a carrier goes from one site to another in order to pick up products or when a carrier returns empty from one location to another after dispatching a cargo, dead miles might occur.

An hour of truck operation costs $66.65 per hour, according to a survey study published by the American Transportation Research Institute (ATRI) in 2020.

Traditionally, small trucking businesses contact freight brokers, who in turn contact warehouses to determine whether or not there is freight available for transport. Unfortunately, around 15 percent to 25 percent of the time, truckers are unable to transport any freight.

As a result, deadhead miles are unquestionably a big financial loss, especially given the fact that freight services are often operated on an interstate basis.

LACK OF PRICE TRANSPARENCY IN THE MARKET

With restrictive pricing and backhaul charges, the transportation industry has been struggling to keep pace. Deadhead mileage costs for the cargo are frequently demanded by fleet operators. As a result, the operator can charge sellers whatever amount, regardless of cargo capacity (or the volume of goods delivered to the destination).

TRUCK DRIVER SHORTAGE

Trucking businesses identified truck driver shortage as the industry’s primary concern in 2020-22. According to the American Trucking Associations, the industry need the recruitment and training of 898,000 additional truck drivers by 2026.


Benefit of Morpro freight automation 

Transportation-as-a-Service (TaaS) can unite manufacturers/sellers, shippers, and carriers together on a single platform. Automation systems can provide the following benefits:


Matching and Optimization of Routes

Traditional backhauls have underused available capacity, which results in deadhead distance.

Instead of traveling back and forth from site A to location B, and then starting a fresh haul from position A to location C, a freight automation system’s route matching capability allows truckers to discover the optimum way to reach location C en route.



Managing Fleet Operations Effectively

Historically, equipment tracking relied on manual data entry by drivers, shippers, and consignees. The procedure was not only time-consuming, but also prone to errors. Transportation supply chain automation aids fleet management in the following ways:


The start and finish times of lodging trucks automatically contribute to the accuracy of HOS (Hours of Service) records.

Vehicle tracking can identify bottlenecks and give immediate assistance in the event of an accident, fuel scarcity, barricades, or other unexpected highway events.

Route direction allows for more efficient transport planning.

It has the potential to minimize idle time and thereby boost fleet productivity.


Pricing Transparency

Transparency in pricing can help to make freight transportation more robust and dependable.

Uber Freight, for example, has developed Lane Explorer, which displays real-time market-based prices up to two weeks in advance.



Processes Conducted Online

In any logistics or transportation firm, the manual payment cycle takes 40-60% more time and effort than the automated payment cycle. Freight bill automation can help heavy-haul truckers get payments more quickly. Manual operations can be eliminated to increase overall supply chain efficiency.


Collaboration Among Fleet Brokers

According to the OECD, truck platooning can save up to 10% on operational expenses. Platooning is the practice of moving a group of cars together in order to maximize road capacity using an automated highway system.


Simultaneously, HCVs (High Capacity Vehicles) can carry 50% more cargo than standard trucks might save up to 20% on cost per kilometre.


Truck platooning and utilizing full HCV capacity, on the other hand, necessitate teamwork among shippers, carriers, and freight brokers. Automation can bring together many players in the freight and logistics industries on a shared platform to collaborate.


Product Highlights

MorPro, a major freight brokerage firm located in Miami, leverages transportation technology to link businesses with truckers. It streamlines the ‘load booking’ process for shippers while also providing them with a cutting-edge Transportation as a Service (TaaS) solution.


MoPro unites shippers and carriers on a single platform, now handling Reefer, Dry Van, and Flatbed goods. The following are the distinguishing elements of the freight-logistics management platform:


  • Shipping companies may produce and monitor their freight from the time it is booked to the time it is delivered.
  • Trucking businesses (carriers) have the ability to manage their fleet and drivers.
  • Backend procedures can be supervised and governed by the internal operations team.
  • Truckers may use the MorPro app to arrange and deliver cargo without waiting for phone calls.

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